Background

In fiscal year (FY) 2014, we obligated $11,419 million to administer the Retirement and Survivors Insurance, Disability Insurance, and Supplemental Security Income programs. These costs largely consisted of payroll and benefits and included payments to State agencies for Disability Determination Services and other administrative expenses, such as travel and rents.

FY 2014 Administrative Expenses (dollars in millions)

Payroll and Benefits

$6,337

State DDS

$1,872

American Recovery and Reinvestment Act*

$141

Other Administrative Expenses**

$3,210

Total Administrative Expenses

$11,560

Notes:

*ARRA expenses consist of primarily National Support Center building costs

Risk Assessment

We conducted a risk assessment on each of the categories in the table above and determined that our administrative payments are not at a significant risk of improper payments. Through combining this risk assessment with our strong internal controls, along with a number of financial audits that indicated no weaknesses in our process, we demonstrate that our administrative payments do not meet the criteria for further reporting to Congress or the Office of Management and Budget.

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